One Stop Shop (OSS)

This is an optional scheme which provides a simple way to report and pay VAT when selling to EU consumers (B2C). It can be used to report and pay EU VAT on  supplies of services and also online intra-community distance sales of goods.

TIP: An intra-community distance sale is one where a VATable supply of goods is made from one EU country to a consumer in a different EU country. For guidance on other OSS and IOSS terms, take a look at our quick guide > [NEED TO ADD LINK]

There are two versions of OSS, Union and Non-Union:

Union OSS

• Businesses that are established in the EU can use this for both intra-community distance sales of goods and non-domestic sales of services to EU consumers.
• Businesses that are established outside the EU can use this for intra-community distance sales of goods only.

NOTE: As part of the VAT reform, the EU are abolishing intra-community distance selling thresholds, meaning you may now have more sales subject to destination VAT. 

Non-Union OSS

• Businesses that are established outside the EU can use this for sales of services to EU consumers.
• To use this scheme, you will have to register with the tax authority within an EU country of your choice.

How OSS works

In a similar way to the existing MOSS scheme, you can report and pay VAT for all B2C sales that are subject to destination VAT across all EU countries in one go.

You charge the VAT rate of the destination country at the point of sale, then report and pay this quarterly via an online portal. Domestic supplies continue to be reported through your domestic VAT Return.

If you sign-up to OSS, you must use it for all relevant supplies made to EU consumers.

Sales reported through OSS are subject to destination VAT regardless of whether you use OSS or not. Therefore, where OSS is not used you would need to register for VAT in each individual EU country sold to.

Deemed suppliers

If you sell goods through electronic interface marketplaces and platforms such as Amazon and eBay, in some cases those platforms may be classed as the deemed supplier for VAT purposes when distance selling to EU consumers. Where this is the case, it removes the need for your business to account for VAT at the point of sale.

If this may affect you, you should consult your electronic platform provider's documentation about how the deemed seller rules will affect what you sell.

Import One Stop Shop (IOSS)

This is also an optional scheme and provides a way to simplify VAT for you and your customers when importing goods into the EU that are destined for consumers (B2C). It can be used by:

• Businesses established in the EU.
• Businesses that are established outside the EU. These businesses may need to appoint an intermediary to act on their behalf in the country of registration.

NOTE: If your business is established in a non-EU country which has an agreement around mutual assistance for the recovery of VAT with the EU, then you don't need to appoint an intermediary.  

It applies to:

• Online B2C sales where goods are imported into the EU from a country or territory outside the EU.
• Consignments, rather than individual items, worth £135 (€150) or less, or the equivalent in local currency.
• IOSS only covers items not subject to excise duties (e.g. alcohol or tobacco products).

How IOSS works

When the IOSS is used, you charge EU VAT at point of sale meaning no import VAT is due at customs. This means your customers see a single accurate cost, without additional hidden costs applied later. It also means the goods will move through customs much more quickly. Similar to the OSS, this EU VAT is then reported and paid via an online portal. However, this is done monthly rather than quarterly.

At a glance

Further information

• HMRC Policy Paper - EU VAT e-commerce package
• European Commission - VAT for e-commerce 
• Enable OSS/IOSS reporting in Sage 50 Accounts